Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q4 2008 Earnings Presentation
40 slides from Leroy Seafood Group ASA's earnings presentation, Feb 26, 2009
Slide 1: Preliminary financial figures 2008
Lerøy Seafood Group Preliminary P li i financial fi i l figures 2008 February 26th 2009 Helge Singelstad CEO Ivan Vindheim CFO
Slide 2: Agenda
Agenda 1 1. Considerations 22. 2 K fifinancial Key i l figures fi Q4 2008 33. 3. Lerøy at a glance 4. 4 Market glance
Slide 3: Turnover LSG
Turnover LSG NOK million 6 500 6 000 5 500 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 4: Internal considerations Q4 2008
Internal considerations Q4 2008 All figures in NOK mill Q4 - 08 Q4 - 07 Change 2008 2007 Change Turnover 1 703 1 591 7% 6 057 6 291 -4 % EBITDA 149 110 35 % 534 541 -1 % EBIT bef adj biom 100 66 53 % 337 387 -13 % Operating profit 249 254 -2 % 301 403 -25 % Affiliated comp. 1 5 -87 % 14 36 -61 % PTP
Slide 5: Internal considerations Q4 2008
Internal considerations Q4 2008 • General • Mandatory takeover process in Q4 • Extraordinary costs • Production • Lower harvest volumes in Q4 than guided • Previous biological issues Lerøy Austevoll • 07gS1/S0 • Pancreas Disease (PD) • Cost is high • Finished harvesting Q2 2009 • 08gS1/S0 • No Pancr
Slide 6: Internal considerations Q4 2008 cont'd
Internal considerations Q4 2008 cont’d • • Sales and distribution • Very good quarter • Good demand for seafood • Seasonal peak • Scale advantages • Affiliated companies • High production costs harvested fish in the Shetland Islands (Norskott/Scottish Sea Farms) • Back on track in 2009
Slide 7: External considerations Q4 2008
External considerations Q4 2008 • Demand and supply • Prices down 8.6% in Q4 08 versus Q3 08 • Prices in Q4 08 9.7% higher than Q4 07 • Prices 2008 33.1% 1% higher than comparable figures for 2007 • Supply growth from Norway 2008 2.7% (volume) • Currently a strong market • Estimated global ssupply p
Slide 8: Agenda
Agenda 1. 1 Considerations 2. 2 Key financial figures Q4 2008 33. Lerøy at a glance 4. 4 Market glance
Slide 9: Income Statement Q4 2008
Income Statement Q4 2008 All figures in NOK 000 000’ Q4 2008 Q4 2007 2008 2007 Salgsinntekter / Operating revenues 1 703 422 1 591 199 6 057 053 6 290 898 Vareforbruk / Cost of goods sold 1 201 287 1 167 086 4 279 152 4 698 675 Lønnskostnader / Salaries S and wages 194 494 166 774 664 377 579 004 An
Slide 10: Balance Sheet Q4 2008
Balance Sheet Q4 2008 All figures in NOK 000’ 31.12.08 31.12.07 Immaterielle eiendeler / Intangible assets 2 959 927 2 832 305 Varige driftsmidler / Tangible fixed assets 1 294 818 1 149 128 Finansielle anleggsmidler / Financial fixed assets 307 359 317 113 Sum anleggsmidler / Total fixed assets 4 5
Slide 11: Balance Sheet Q4 2008
Balance Sheet Q4 2008 All figures in NOK 000’ 31.12.08 31.12.07 Innskutt egenkapital / Equity contributions 2 642 612 2 646 280 Opptjent egenkapital / Earned equity 1 101 073 1 111 733 Minoritetsinteresser / Minority interests 20 658 20 830 Sum egenkapital / Total equity 3 764 343 3 778 843 Avsetnin
Slide 12: Cash Flow Statement Q4 2008
Cash Flow Statement Q4 2008 All figures in NOK 000’ Q4 2008 Q4 2007 2008 2007 Kontantstrøm fra drift / Cash flow from operating activities Resultat før skatt / Profit before tax 207 143 250 189 164 047 368 827 Ordinære avskrivninger / Ordinary depreciation 48 781 44 613 197 023 153 846 Endring kunde
Slide 13: Key figures - Lerøy Seafood Group Q4 2008
Keyy figures g - Lerøyy Seafood Group p Q4 2008 Nøkkeltall / Key figures Q4 2008 Q4 2007 2008 2007 1) Resultatmargin / Profit margin 12,16 % 15,72 % 2,71 % 5,86 % Driftsmargin før just.biomasse./ Operating margin before adj.biomass. 5,89 % 4,13 % 5,57 % 6,16 % 2)) Driftsmargin / Operating margin 14
Slide 14: Funding
Funding • Sound S debt repayment profile f • Bank loans and no “balloons” NOK million 2009 2010 2011 2012 2013 Instalments 217 249 230 215 214 • Covenants NIBD/EBITDA < 5 and Equity ratio > 30% • YE 2008 4 4.0 0 and 48 48.3% 3% respectively • Satisfactory committed unused credit lines • Lower capex
Slide 15: Agenda
Agenda 11 1. Considerations 2.2 Key financial figures Q4 2008 3.3 Lerøy at a glance 4.4 Market glance
Slide 16: Lerøy Seafood Group - Global organization
Lerøy Seafood Group - Global organization Norway Farming Sweden Dist. & Sales Dist & Sales Dist. Scotland/Shetland Farming Dist. & Sales Japan p Spain, Portugal, Dist. & Sales Turkey France Dist. & Sales Dist. & Sales China Dist. & Sales North America Dist. & Sales Chile
Slide 17: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales & Distribution Production Affiliated Hallvard Lerøy y AS Lerøy West Norskott Havbruk AS** 100% 100% 50% Lerøy Sverige AB Lerøy Mid-Norway Alfarm Alarko Lerøy*** 100% 100% 50% Nordvik SA Lerøy North 90% 100% Portnor Lda Lerøy Fossen AS = Salmon farming, processing 60% 10
Slide 18: Lerøy Seafood Group
Lerøy Seafood Group • • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and p processingg in Norway, y, Sweden,, France,, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China and USA) • 11 0% share of Norwegian
Slide 19: Lerøy Seafood Group
Lerøy Seafood Group • Market strategy: gy • Quality • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical G hi l spread d • Continuity in deliveries • Cost efficiency
Slide 20: Lerøy Seafood Group - Sales per market Q4 08
Lerøyy Seafood Group p - Sales pper market Q4 08 Rest of Europe Others USA and Canada 7,0 % 1,7 % 52% 5,2 Norway 15,3 % EU 58,7 % Asia Pacific 12,1 %
Slide 21: Lerøy Seafood Group - Sales per product Q4 08
Lerøy Seafood Group - Sales per product Q4 08 Salmontrout Shellfish 8,3 % Other/other species 5,7 % 5,7 % Pelagic fish 2,8 % Whole salmon White fish 51,6 % 9,0 % Processed salmon 16,8 %
Slide 22: Farming Norway
Farming Norway Lerøy Aurora AS Sigerfjord Aqua AS • Lerøy Aurora AS • Sigerfjord Aqua AS • Lerøy Midnor AS • Lerøy Hydrotech AS • Lerøy Fossen AS Lerøy Midnor AS • Lerøy Austevoll AS Lerøy Hydrotech AS Lerøy Fossen AS Lerøy Austevoll AS
Slide 23: Lerøy Seafood Group – Salmon/trout farming
Lerøy y Seafood Group p – Salmon/trout farming g Company p y Ownership p Licences Mill. smolt 2007 2008 2009E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9,5 29 200 29 100 35 000 Lerøy Aurora AS 100 % 17 5,0 17 100 17 200 20 500 L Lerøy F Fossen AS 100 % 7 42 4,2 9 100 6 500 10 000 Ler
Slide 24: Key Figures Production Q4 2008
Key Figures Production Q4 2008 Lerøy Lerøy Lerøy Others/ Figures MNOK Lerøy Midnor Hydrotech Lerøy Aurora Fossen Austevoll elimination Total Revenues 232,8 177,1 150,4 64,0 119,7 92,7 836,7 EBIT before biom.adj 46,6 1,8 22,6 3,0 -17,6 6,5 62,9 EBIT 112,2 12,2 47,3 12,7 20,4 6,5 211,2 Volumes (gwtt)
Slide 25: Key Figures Production 2008
Key Figures Production 2008 Lerøy Lerøy Lerøy Others/ Figures M NOK Lerøy Midnor Hydrotech Lerøy Aurora Fossen Austevoll elimination Total Revenues 823,3 619,7 451,9 252,6 401,9 322,7 2 872,1 EBIT before biom.adj 162,6 42,9 59,8 14,5 -39,0 11,3 252,0 EBIT 149,5 27,5 28,2 26,3 -27,2 11,3 215,7 Volume
Slide 26: Key Figures Sales & Distribution Q4 2008
Key Figures Sales & Distribution Q4 2008 Sales & Figures MNOK Distribution Elimination Total Revenues 1 827,5 -135,6 1 692,0 EBIT before b f biom.adj bi dj 52 8 52,8 02 0,2 53 0 53,0 EBIT 52,8 0,2 53,0
Slide 27: Key Figures Sales & Distribution 2008
Key Figures Sales & Distribution 2008 Sales & Figures MNOK Distribution Elimination Total Revenues 6 425,9 -498,2 5 927,7 EBIT before biom.adj 127,9 0,7 128,6 EBIT 127,9 0,7 128,6
Slide 28: Norskott Havbruk
Norskott Havbruk LSG’ share LSG’s h = 50% NOKm Q4 - 2008 Q4 - 2007 2008 2007 Revenues 236 188 772 841 EBITDA 17 14 94 176 EBIT bef adj biom 10 5 58 140 EBIT 6 3 56 100 Pre tax 1 -3 31 81 Volumes (gwtt) 6,6 5,8 22,8 23,8 EBIT/kg 15 1,5 09 0,9 25 2,5 59 5,9 Balance sheet 31.12.2008 31.12.2007 Licences
Slide 29: Agenda
Agenda 11 1. Considerations 2.2 Key financial figures Q4 2008 3.3 Lerøy at a glance 4.4 Market glance
Slide 30: Slide 30
Slide 31: Fresh Atlantic Salmon Norway price development
NOK/kg 10 15 20 25 30 35 40 45 50 1997-1 1997-9 1997-17 1997-25 1997-33 1997-41 1997-49 1998-5 Figures as per 18.02.09 Source: FHL/NSL/NOS 1998-13 1998-21 1998-29 1998-37 1998-45 1998-53 1999-8 1999-16 1999-24 1999-32 1999-40 1999-48 2000-4 2000-12 2000-20 2000-28 2000-36 2000-44 2000-52 2001-8 2001
Slide 32: Salmon export price from Norway, week 7-2009
Avrg. Q4 2008 NOK 25.33 (+9.7%) Avrg. Q4 2007 NOK 23.10 Oslo Salmon export from Norway as of week 7-2009 Avrg. 2008 NOK 25.75 (+3.1%) Fresh Atlantic salmon salmon, cross cross-section section, FCA Oslo. Oslo Avrg. 2007 NOK 24.97 NOK / kg Oslo Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-
Slide 33: Market development for Atlantic Salmon from Norway
Market development for Atlantic Salmon from Norway J D 2007 vs J Jan-Dec Jan-Dec D 2008 Volume V l 2007 Volume V l 2008 Change Ch V l Value 2007 Value V l 2008 Change Ch EU 508 149 533 648 5,0 % 12 675 980 13 262 860 4,6 % Others 91 679 91 107 -0,6 % 2 153 319 2 208 910 2,6 % p Japan 28 784 24 585 -
Slide 34: Market development for Atlantic Salmon: Others
Market development for Atlantic Salmon from Norway Jan-Dec 2007 vs Jan-Dec 2008 Others: Others Volume 2007 Volume 2008 Change Value 2007 Value 2008 Change Uk i Ukraine 13 506 18 262 35 2 % 35,2 206 947 277 180 33 9 % 33,9 Hongkong 12 104 12 801 5,8 % 281 395 341 568 21,4 % China 9 019 7 966 -11,7 %
Slide 35: Market development for Atlantic Salmon Jan 2009
Market development for Atlantic Salmon from Norway J 2008 vs J Jan Jan 2009 Volume V l 2008 Volume V l 2009 Change Ch V l Value 2008 Value V l 2009 Change Ch EU 38 244 43 605 14,0 % 924 254 1 155 147 25,0 % Others 7 165 5 939 -17,1 % 174 445 156 834 -10,1 % Japan p 2 145 2 064 -3,8 , % 59 000 75 111
Slide 36: Market development for Atlantic Salmon Jan 2009: Others
Market development for Atlantic Salmon from Norway Jan 2008 vs Jan 2009 Others: "Others" Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change Uk i Ukraine 1 310 1 050 -19,8 19 8 % 18 766 20 827 11 0 % 11,0 Hongkong 1 101 868 -21,2 % 27 190 21 913 -19,4 % China 709 623 -12,1 % 17 570 15 651 -1
Slide 37: Atlantic salmon – Supply
Atlantic salmon – Supply in tons WFE Change Change Change Change Change Change Change 2003 02-03 2004 03-04 2005 04-05 2006 05E-06 2007 E 06-07E 2008 E 07E-08E 2009 E 08E-09E Norway 508 400 14,5 % 537 000 6% 572 200 7% 598 500 5% 723 300 20,9 % 741 000 2,4 % 828 000 11,7 % United Kingdom 160 800 14,
Slide 38: Drivers Salmon per 31.12.2008
Drivers Salmon p per 31.12.2008 • Norway total export volume of Atlantic Salmon (722,488 MT WFE) + 2.7 % • Norway total export value of Atlantic Salmon (NOK18,054m) + 3.5 % • Norway N – EU ((volume l Atl Atlantic ti SSalmon) l ) (533 (533,648 648 MT WFE) + 5.0 50% • Norway – EU (value Atlantic Salmo
Slide 39: Going forward!
Going forward! •Satisfactory financing •Lower capex •Operational improvements •Good demand for seafood •Improved profitability •Continued Continued consolidations •Credit crunch
Slide 40: Thank you!
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